Latest figures from Asda’s Income Tracker reveal that household disposable incomes fell in every UK region during first quarter of 2023, compared to the same period a year earlier, showing that no areas of the country are immune from the cost of living crisis.
Across the UK as a whole, the amount households had to spend on themselves, after paying taxes and essential bills, fell by 9.2% during the quarter to an average of £213 per week, compared to £236 per week in same period in 2022.
Despite the gross income growth at present, discretionary incomes continue to fall as prices are rising at a faster rate than net incomes.
Households in the South East saw the biggest fall in disposable incomes in absolute terms, down by £41 per week (18% year-on-year) – from a weekly average of £227 in 2022 to £186 in the first quarter of this year.
Families in Wales and Northern Ireland also experienced significant declines in disposable income as rising living costs continued to disproportionately impact the devolved nations.
Northern Ireland recorded the largest year-on-year decline in percentage terms of any region, with a drop of 21.2% in the first quarter of 2023. In real terms, this means that families in Northern Ireland were £27 per week worse off across the quarter compared to the same period of 2022.
In Wales, household disposable incomes were 11.6% down compared to a year earlier, equivalent to a shortfall of £23 per week. Welsh households continue to be impacted by slow wage growth, with only the South East region seeing weaker growth in this area during the quarter.
NAM Implications:
- No comfort (or excuse) but a face-up to the realities of consumer issues in the UK.
- Obvious that the impact of inflation is widening the gap between prices that are rising at a faster rate than net incomes.
- These regional differences need to be factored into business forecasts.
- And where possible appropriate adjustments should be made to trade and consumer support…
